AMMENDMENT SUBMITTED TO BOARD OF ALDERMEN FOR PROPOSED FY 10-11 BUDGET
(5/17/2010) NEW HAVEN- At a press event today, Mayor John DeStefano. Jr. announced an amendment that was submitted to the Finance Committee of the New Haven Board of Aldermen earlier in the day seeking a Fiscal Year 2010-2011 budget that minimizes the tax increase on homeowners.
The amended budget provides for cuts within City departments and only a 1.64 percent total budget increase over Fiscal Year 2009-2010. Increases in the budget are concentrated in the areas of workmen’s compensation, pension and health care; items that cannot be reduced or changed without contract negotiation with the City’s labor unions. Top cost drivers in the budget are:
• $7.7 million increase in medical costs
• $1.45 million increase in self insurance costs
• $1.14 million increase in workers’ compensation costs
The amendments provide for nearly $6 million in cuts from the Mayor’s proposed FY2010-2011 City budget including the following:
-Elimination of public safety hires
-Elimination of district managers at management team meetings
-Reductions to police overtime
-Eliminating mounted unit of the police department
-4th of July Fireworks eliminated
-Christmas Tree on the Green eliminated
-City Calendar eliminated
-$225 k Reduction in operating contribution to Tweed New Haven Airport
-$1.5 million from the Board of Education including the elimination of the Talented and Gifted Program (TAG), non-academic summer programs and athletics programs
-Reduced Market New Haven operating contribution
-Reduced Pilot Pen contribution
-Reduction to Shubert operating agreement
-Re-bid of City life insurance policy
-Elimination of television/cable connections
-Reductions in funding to the Early Childhood Council
-Reductions to City Youth Initiative
-Reductions in medical and workers compensation benefits
-Elimination of all contractual employees receiving pensions
-0% raises for executive management, executive confidential employees
-Elimination of longevity payments to executive management and confidential employees
-New medical plan with lower employer costs
-Closing defined benefit plan for new employees
Further, DeStefano announced $1.6 million in allocated Innovation Based Budgeting (IBB) Savings and another $6.2 million in targeted IBB savings.
Allocated savings include:
• $500,000 savings in public works tonnage
• $70,000 savings from expected from the new public works fee schedule associated with recycling and enforcement of flow control
• Re-Bidding Workers Compensation: Resulting in $321,600 in savings.
• Re-Bidding of Life Insurance: Resulting in $100,000 in savings.
• Increase in Residential Parking Permit: $25,000 in new revenue.
• Elimination of Police Mounted Unit: $110,000 in savings.
• Elimination of Energy Maintenance Contract $340,000 in savings.
• Reduction of IBB Positions to $1 to be funded by vacancies as they occur ($224,000)
The following targeted cuts are in development and are, in some cases, subject to negotiation and implementation:
• Redesign of Board of Education Custodial Services for a $1.5 million savings:
• Library, Parks, Elderly, Disability, Youth = $125,000
• Electronic Permitting Project = $225,000
• CMed Function = $365,000
• Document Management = $25,000
• Finance Review: Evaluation and bidding of a number of services including: phone services, banking services, payroll = $100,000
• IT: Evaluate structure, vendor relationships and IT solutions to general government costs = $250,000
• Armory Re-Use: $70,000
• Engineering: Creation of Storm Water Authority = $1 million
• Self Insurance rebid
• Reduce Liability = $750,000
• Performance budgeting = $2.2 million
With this amendment, the average homeowner will experience an increase of approximately $18 per month in their tax bills. Taxes will remain frozen for eligible seniors who earn less than $53,000 per year.
With the amendments, the Mayor’s commitments to school change, public safety and economic development are preserved. Board of Education cuts target athletics, non-academic summer programming and the talented and gifted program. The budget amendments uphold City priorities of securing resources maintaining a three to five minute response time from the fire department/emergency medical response, new police officers to patrol City streets and the support needed to ensure that the school reform efforts spearheaded by the Mayor and Dr. Reginald Mayo are implemented.
“These are tough times all over America and there are plenty of tough choices in front of us,” said DeStefano. “This budget won’t be easy for anyone but it gets done what must be done: making things better for our kids by promoting school change in a nationally landmark fashion, working in partnership with all communities to keep our families safe, and keeping us growing the best among Connecticut cities.”
The amendment includes net $5 million in revenue for the securitization of the City’s Parking Meters. The amendment would bring the residential tax bill increase down to an overall 4 percent increase.
Contact Name: Jessica Mayorga
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Contact Phone: 203-946-7660